LONDON (ShareCast) - (Sharecast News) - Imperial Brands said the sale of its premium cigar business would complete later than expected and that it would lend the buyers up to €250m (£227.5m) while they arrange financing.
The FTSE 100 company agreed the €1.23bn sale, comprising two distinct transactions, on 27 April. Gemstone Investment is buying Premium Cigar USA for €185m and Allied Cigar Corporation will acquire Premium Cigar RoW for €1.04bn.

The transaction was due to complete by the end of September. Imperial said the deal was now scheduled to close on 29 October and that it would provide a six-month vendor loan for as much as €250m to Gemstone and Allied Cigar "while the purchasers finalise long-term financing arrangements".

Gemstone and Allied Cigar have made a non-refundable downpayment of €91.7m to Imperial and have agreed to make a further non-refundable payment of about €85m by 7 October.

"All other terms remain in line with the announcement of 27 April," Imperial said. Imperial plans to use the £958m of net proceeds to reduce its debt.

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